03/12/2024
March 12, 2024 Labor and Public Employees Committee, HB 5470
Public Hearing Testimony
Danté Bartolomeo
Commissioner
Department of Labor
Labor and Public Employees Committee
March 12, 2024
Good morning Senator, Kushner, Representative Sanchez, Senator Sampson, Representative Weir and members of the Labor and Public Employees Committee. Thank you for the opportunity to provide you with written testimony regarding HB 5470: AN ACT CONCERNING RIDESHARE AND DELIVERY DRIVER MINIMUM STANDARDS. My name is Danté Bartolomeo and I am the Commissioner of the Connecticut Department of Labor.
While the Connecticut Department of Labor (CTDOL) recognizes the intent behind HB 5470, we must alert the Committee to several items of concern. First, Sections 2-6 of HB 5470 requires CTDOL to set, update, and enforce minimum wage rates for drivers. This would be a new and significant burden of CTDOL’s Wage and Workplace Standards Division (WWSD), which, as the committee is aware, is currently operating under a backlog of assigned cases and those yet to be assigned, and does not have the resources to divert to an additional mandate.
Second, Section 7 of HB 5470 outlines how a network worker could bring a complaint to CTDOL if that worker believes that the company implemented “account deactivation practices against a network worker who has completed such network company's probationary period, except where willful misconduct has occurred, or such network company has a bona fide economic reason.” This section mandates a hearing under the Uniform Administrative Procedure Act upon receipt of such complaint and is an additional unfunded burden on the agency.
Third, Section 8 of HB 5470 requires CTDOL to create a new registration system and database for transportation network companies to report wages and related data. Subsection 8(4)(c) does say that CTDOL may set a fee that “shall be sufficient to cover all cost incurred by the Labor Department in carrying out the requirements of this section.” While we do appreciate the intent behind giving our agency the ability to set such a fee, we do not have a current system that could be adapted for this purpose. Therefore, to estimate the cost of a new system, CTDOL and BITS staff would need to gather requirements, develop a level of effort estimate statement, configure a system design and then develop an RFP. Once we had clarity on the type and cost of automation, we would determine the number of staff needed to operate this program and the associated personnel cost. CTDOL would need start-up funding for the technology and staff, and this would mean a significant fiscal impact associated from this legislation. In addition, we fear that continued maintenance of the system and ongoing personnel cost, may require an exorbitant fee, beyond what the committee likely has in mind.
Finally, CTDOL does recognize the intent of Section 11, which establishes “an account to be known as the "network company account" which shall be a separate, nonlapsing account within the General Fund” to enforce sections 1-8. However, we must note that there are no funds appropriated to this account in the proposal. This bill would result in a significant fiscal burden to our agency.
Thank you for the opportunity to provide this written testimony.
Connecticut Department of Labor • www.ct.gov/dol
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